Hampshire councils at 'breaking point' amid fears that chancellor's budget could decimate funding

In the autumn budget statement on November 17, the chancellor of the exchequer is expected to outline measures to fill in a ‘black hole’ in the nation's finances.

The financial void was reported to be as large as £60bn which could require up to £35bn of spending cuts and £25bn raised through taxation.

South East Councils (SEC), an association of local authorities in the south-east region, said that if next week’s statement includes cuts to public spending it will be ‘catastrophic for local authorities’.

‘Council budgets are already at breaking point and we are hearing from a number of South East Councils members that their services are already at risk as a direct result of rising costs and inflationary pressure.

‘The funding model for local government is broken, councils need to be empowered to do what is right for communities and build on the South East’s economic strengths.

‘Devolution of powers, including finance, would allow the South East to invest in its future rather than lobby Whitehall to get our own taxpayers’ money back.

‘The south east is one of three key net contributors to HM Treasury - this gives us a strong basis for fiscal devolution.

‘With more control over its destiny, the region can do more, support more and can deliver more for the UK.

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‘We heard support for greater fiscal freedoms from local government leaders at last month’s Summit of the South East and plans for the South East Finance Commission are being developed in response.’

Councillor Seán Woodward, leader of Fareham Borough Council has said that reviewing the council's medium-term finance strategy will identify ‘the scale of the financial challenge before us’.

He said: ‘We expected to use funds from council reserves to balance the budget in the last financial year, but this was avoided due to the steps taken to generate income.

‘However, we know that we face some significant financial pressures, with over a million pounds already drawn from reserves in this financial year.

‘This will be compounded further by suggested spending cuts, as well as by fuel and energy price increases.

‘We are also responding to demand from our customers to do more in areas such as homelessness and climate change, all of which add significantly higher costs to our base budget.

‘As the council develops its corporate strategy for the next five years, improving services for our residents will remain our priority, and we will continue to look at ways to save money and generate income to alleviate the financial pressures we face.’

Havant Borough Councillor Tony Denton cabinet lead for finance, added: ‘Havant Borough Council is facing pressures. These include elements relating to inflation, fuel and energy prices, and housing pressures.

‘However, as we work through our budget-setting processes and long-term planning, we have anticipated current issues and are confident we can make provisions.

‘This could possibly change as a result of the emerging national picture and this council would support public sector lobbying of the government to ensure that these rising service and wage costs are appropriately funded at a national level, so that we can maintain services to local residents.’